The Federal Government will receive a $500 million loan from the African Development Bank Group to fund the initial phase of the Economic Governance and Energy Transition Support Program.
EGET-SP is an initiative aimed at accelerating the transformation of the country’s electricity infrastructure and improving access to cleaner sources of energy.
These efforts would decentralize the power supply industry and draw investments from subnational governments and the private sector, according to a statement the bank posted on its website on Thursday.
“The Board of Directors of the African Development Bank Group has approved a loan of $500m to the Federal Republic of Nigeria to finance the first phase of the Economic Governance and Energy Transition Support Programme, a new programme aimed at accelerating transformation of the country’s electricity infrastructure and improving access to cleaner sources of energy,” the bank stated.
Additionally, it stated that the loan would specifically support the execution of Nigeria’s new Electricity Act and Nigeria Energy Transition Plan, helping to close the financing shortfall in the federal budget for the fiscal year 2024–2025.
Nigeria ratified the new Electricity Act in June 2023 and began implementing its energy transition strategy in August 2022.
By 2030, it hopes to supply most people with clean cooking options through the use of electric cookstoves, biogas, liquefied petroleum gas, and biofuels like ethanol.
EGET-SP will support these initiatives by bringing much-needed improvements to Nigeria’s electrical infrastructure and accelerating the move of millions of homes and businesses toward cleaner, renewable energy sources.
The bank group’s $500m support to Nigeria is the most recent in a series of initiatives aimed at supporting the country’s economic growth, poverty reduction, and climate action efforts.
